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WorksheetsEconomics Practice 7.1
Total questions: 10
Worksheet time: 10mins
A perfect competitive firm charges a price that is ____________
different to other firms
lower than other firms
higher than other firms
similar to other firms
Which of the following describes a monopoly firm?
single seller
many substitutes
many sellers
no barrier to entry
These are the features of monopoly. except.
single supplier
price taker
imperfect knowledge
high barriers to entry
Which is not an advantage of a monopoly?
achieving economies of scale
producing a greater quantity at profit-maximizing level of output
high level of research and development
higher prices and lower output
What is the goal of a firm?
to make profits
to maximize profits
to maximize revenue
none of the above
Which of the following is not an effective way of measuring the size of a business?
number of employees
value of capital invested
value of sales
profit level
One of the most common reasons for a new business not surviving is because of..
too much time spent on developing the business plan
poor cash flow as a result of poor financial planning
no competitors in the industry
consumers like dealing with small firms providing a service
Expanding the product line is an example for….
Internal growth
External growth
Merger
Joint venture
Which of the following options is most likely to be a reason why a firm wants to expand its business?
to keep control of the business
to increase the level of profits the firm will make
to encourage competition
to avoid publicity
Which of the following is an example of horizontal integration between two businesses?
an oil company and an insurance company merge
a steel firm takes over a coal mine that supplies coal
a shoe shop buys out a shoe factory
coca-cola takes over a small soft drink business
